A reserve list site in an appealing location was made available for application by Urban Redevelopment Authority (URA), in spite of the unseasonable timing.
The newest offering of URA is a 1.9 hectare white site beside Jurong East MRT Station. About 30% of the 1.15 million square foot maximum gross floor area is planned for office use while the remaining floor are to be used for other purposes, such as residential and hotel uses.
This is the first sale site that has been offered by URA’s Jurong Gateway area since the planning authority of Singapore divulged plans for the Jurong Lake District this year.
The scheduled release of URA’s plum hotel site on a hilly terrain at Bukit Chermin went ahead on Thursday.
“Given the current uncertain business environment, it’s unlikely there will be any interest in the Jurong East site. There’s also difficulty in getting funding. Investors would rather go for completed, income-generating assets that can give immediate returns than to embark on a fresh development with higher risks,” said Ong Choon Fah, DTZ executive director.
Although the Jurong East “white” site has good location, some market watchers and experts predict it will not likely attract buyers anytime soon.
Tay Huey Ying, Colliers International director, said, “It is unlikely the Jurong East site will be triggered for launch until the market picks up significantly. The land parcel is quite attractively located next to an MRT station and in an area within a growth centre.”
DTZ executive director Ong Choon Fah agreed that any interest in the Jurong East “white” site is hardly possible now because of the current ambiguity of business environment. He said investors would prefer finished assets that already generate income and can provide quick returns rather than invest on a more risky, new development.